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Warburg Pincus, Faering Capital invest $48.6M in apparel firm BIBA

05 December, 2013

PE firms Warburg Pincus and Faering Capital have invested approximately $46.8 million (Rs 300 crore) in BIBA Apparels Pvt. Ltd, a women’s and girls’ ethnic wear brand in the country. The investment includes a primary fundraise and provides an exit to the existing investor, Future Lifestyle Fashions Ltd. The transaction is the largest private equity investment in the Indian ethnic wear market to date.

VCCircle first reported this development earlier in September.

Siddharth Bindra, managing director, BIBA, said, “I am happy to be able to provide a healthy exit to Future Lifestyle Fashions. I am also very excited to now have as partners Warburg Pincus and Faering Capital, as we scale up BIBA to the next level.”

This investment will enable the company to evolve into a ‘fashion house’ catering to all ethnic wear requirements of women and girls across income levels, in India and abroad. It plans to expand its distribution network and strengthen its presence in the higher-end fashion category through new product launches and JVs with acclaimed designers. It also plans to launch a value brand to enhance its presence at lower price points, the company said in a statement.

Kishore Biyani, Group CEO, Future Group, said, “India is just witnessing the emergence of large fashion brands and we are quite sure BIBA will play a major role in this journey in the years to come.”

In October this year, Future Group’s lifestyle business housed under a new firm Future Lifestyle Fashions Ltd (FLF) got listed on the stock exchange. The firm, which was created through the demerger of the lifestyle fashion businesses of Future Retail Ltd (formerly Pantaloon Retail [India] Ltd) and Future Ventures India Ltd, also during the same period, had signed a deal to exit its investment in fashion apparel firm BIBA.

Vishal Mahadevia, managing director and co-head India, Warburg Pincus, said, “Over the last two decades, BIBA has built a women’s ethnic wear brand in an industry that continues to demonstrate positive growth trends.”

The mandate for the deal was run by mid-market investment bank Equirus Capital.

Established in 1986, BIBA has grown into an organised player among women’s and girls’ ethnic wear manufacturers in India with over 330 points of presence across exclusive brand outlets and  e-commerce portals across the country.

Faering Capital is a boutique Indian asset management firm founded by Aditya Parekh and Sameer Shroff. The firm currently manages a Rs 865 crore domestic private equity fund (Faering Capital India Evolving Fund). BIBA is Faering Capital’s seventh investment from this fund;

its previous investments include Ratnakar Bank, Gokaldas Intimatewear, Manipal Health Enterprises, Mahindra & Mahindra Financial Services, KOOH Sports and Avantha Power.

(Edited by Joby Puthuparampil Johnson)


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Warburg Pincus, Faering Capital invest $48.6M in apparel firm BIBA

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